NOVATO -- Hennessy Advisors, Inc. (OTCBB: HNNA) on Wednesday reported a 350 percent year-over-year increase in its third-quarter net income, propelled in part by a 2012 acquisition that more than tripled the firm's assets under management.
The Novato-based investment-management firm had net income of $1.3 million for its third fiscal quarter, ended June 30, equivalent to 24 cents per diluted share. Earnings per share were up from 5 cents during the same quarter last year.
The firm had an average of $3.57 billion in average mutual fund assets under management during the quarter, up 341 percent from last year. The increase represented mutual fund assets purchased from FBR & Co. in October.
[caption id="attachment_60787" align="alignleft" width="200"] Neil Hennessy[/caption]
"We are very pleased with our third-quarter results, which were aided by increased investor interest in our products," said Neil Hennessy, president, chairman and chief executive officer, in an announcement. "With the successful integration of the mutual funds from our last acquisition, I believe we are well-positioned to continue to serve and retain our shareholders by offering a broad lineup of solidly performing products and to attract new investors by maintaining an aggressive marketing and sales program."
Hennessy Advisors had a return on its average mutual fund assets of 3.8 percent for the quarter, compared to 3.7 percent during the same three months in 2012.
Net income for the first nine months of the year was $3.2 million, up 364 percent and equivalent to 56 cents in earnings per share.
The firm's board of directors declared a quarterly dividend of 3.125 cents per share, payable on Sept. 15 to shareholders of record as of Aug. 22.
The company's stock price $8.25 per share at the close of trading Wednesday, up 5 cents from Tuesday.